Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: Ho Hup Construction Co Bhd
’s 2016 earnings fell below the preceding year’s figure, dragged down by a 52% year-on-year drop in earnings recorded in the fourth quarter (Q4).
Announcing its quarterly results to Bursa Malaysia on Monday, the construction and property development group said profit attributable to shareholders slid to RM9.2mil in the quarter ended Dec 31, 2016, from RM19.35mil a year earlier.
Revenue, meanwhile, declined by 48% to RM44.71mil.
The lower Q4 performance pulled down the annual earnings to RM65.85mil in 2016 versus RM70.93mil in the previous year.
Ho Hup said the contraction in Q4 profit was due to higher operating cost incurred from interest subsidy for purchasers and facility fees for loans undertaken for the period.
Operating expenses swelled up to RM9.78mil in the quarter under review from RM4.80mil a year earlier. Gross profit was also lower at RM29.28mil against RM37.18mil in the corresponding period of 2015.
On financial year 2017’s prospects, Ho Hup said its board viewed the year as “encouraging”.
This is because its construction division has actively tendered for RM3.3bil worth of projects while its property development division plans to launch projects in Bukit Jalil (Kuala Lumpur), Kota Kinabalu (Sabah) and Kulai (Johor) with a combined gross development value of RM1.7bil.
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